LEGISLATION
CARBON REDUCTION COMMITM
THAT MAJORITY OF COMPANIES
simulation of new carbon In advance of the new legislation, providing participants with a simulation of
A
cutting legislation has regional development agency One North the CRC processes from energy and
highlighted that the majority of East commissioned energy consultancy carbon data collection and reporting and
organisations affected will TNEI Services to run a 12-month the compilation of performance league
struggle to collect and verify simulation of the CRC Scheme to give tables to experiencing virtual carbon
their energy data risking unnecessary organisations in the region a head start trading days. The aim is to demonstrate
costs, penalties and in extreme cases and allow them to get CRC-ready. One of through tools and practical engagement
facing criminal prosecution for non- the key aims of the project, only the what will be required under the new
compliance. second of its kind in the UK, is to reduce legislation and to help get organisations
The Carbon Reduction Commitment the risk of North East businesses incurring CRC-ready.
(CRC) simulation has also revealed that unnecessary penalties. One North East Leadership Specialist,
when ‘trading’ carbon allowances in a The CRC comes into effect in April Kate Hatton, said: “As part of our support
virtual online auction, many organisations next year with qualifying organisations for regional businesses we identified the
were exposed to unnecessary financial risk required to buy carbon allowances to opportunity to assist organisations to be
and potential cash flow problems as the cover the emissions they produce. better prepared for the new legislation
‘trading’ teams had no clear purchasing Around 30 organisations in both the that will come into force next year.
strategy and lacked the power to influence public and private sector which will be “The CRC presents major challenges
decisions that would be required under affected by the CRC are involved in the for organisations with high-energy bills. By
the real CRC. year-long simulation. The project is taking part in our simulation,
organisations can gain practical
experience of the legislation, get access to
CRC Simulation Case Study
free expert advice and pro-actively cut
their carbon dioxide emissions.”
The lessons learnt from the simulation
Northumbria Police, Claire Swift,
are helping participating organisations
prepare for the legislation and identify
Sustainable Development Advisor “quick wins” that will improve their
position in the carbon performance league
eing involved in the CRC Simulation with developments via the Environment table when it goes live next year. The
B
has been an eye opener for the Agency website and through information simulation is also highlighting, for the
Northumbria Police Force. The in IEMA publications – but it was a Catch wider business community the major
organisation knew it would be affected by 22 situation, finding the information was issues that need to be addressed, the
the CRC legislation but without the difficult unless you knew where to look for likely pitfalls and how they can be
simulation, they may have been it. avoided.
unprepared and would have seriously With information feeds and briefings What is clear is that a significant
underestimated how much it would cost from the CRC Simulation team, Clare has number of organisations are still
the force. been able to accelerate the force’s carbon unprepared for the rigours of monitoring
The CRC Simulation has highlighted cutting efforts and channelled resources and reporting energy use and do not have
how much the legislation could potentially into initiatives that will help reduce their the ‘CRC Team’ in place to both plan and
cost Northumbria Police, much of which CRC liabilities. One of the first initiatives deliver the energy savings required, or
will be repaid in the first round of rebates, has been to implement Automatic with the purchasing power to secure
but will pose cash flow problems in the Monitoring and Reporting (AMR) of energy carbon allowances at a reasonable cost.
interim. Like all public sector use and developing a Carbon Feedback from the first ‘Trading Day’
organisations, the police force is Management Plan. focused on the need to appoint a CRC
accountable to the public for its Clare Swift explained: “We are in a Team to take joint responsibility for their
expenditure and its energy management better position now than we were 6 organisation’s compliance spanning senior
efforts are hampered by the need to months ago thanks to the simulation. It management, finance, energy
channel resource into front line activities – has given us the impetus to implement the management and possibly the legal
i.e. preventing and solving crime. AMR – and this has been a lot speedier department because of the serious
Keeping abreast of developments than it would have been without the liabilities involved in the CRC.
surrounding the CRC legislation was simulation.” One of the most serious issues was
difficult prior to the team joining the CRC “It has also raised awareness about how to account for the money required to
Simulation project. Sustainable the need to manage energy use across the buy the carbon allowances, which in some
Development Advisor at Northumbria organisation and allowed the team to start cases would amount to nearly half a
Police, Clare Swift, was aware of the compiling information at a relevant time million pounds and recognising the
legislation and tried to keep up to date and in an appropriate form.” impact this will have on an organisation’s
cash flow and profitability.
36|
SUSTAINABLE FM | NOVEMBER/DECEMBER 2009
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44